Trump’s Tariff War Hits UP Exporters Hard, ₹400 Crore Orders Put on Hold
The recent tariff decision by former US President Donald Trump has shaken exporters in Uttar Pradesh. Due to a 26% hike in import duty effective April 9, UP exporters have placed orders worth ₹300-400 crore on hold. Leather, textile, and engineering sectors are most affected.
Kanpur, April 1, 2025: The tariff decision by former US President Donald Trump has sent shockwaves through export businesses in Uttar Pradesh (UP). Exporters across the state, especially in Kanpur, are facing an additional 26% import duty on goods being exported to the United States starting April 9.
This sudden spike in costs has forced many exporters to put ₹300-400 crore worth of orders on hold, creating uncertainty in the region’s trade sector.
According to trade experts associated with the Ministry of External Trade, India still enjoys comparatively lower tariffs than several competing nations. However, the current scenario is alarming for local exporters who are now hesitant about proceeding with existing or new deals.
Sunil Vaishya, former national president of the Indian Industries Association, explained that Trump's tariff policy is a double-edged sword. “While India enjoys a lower tariff compared to competitor nations, making our products cheaper in the US market, the new duty structure may still make Indian exports more expensive than before, possibly affecting demand,” he noted.
Alok Srivastava, Assistant Director at the Federation of Indian Export Organisations (FIEO), said that UP alone does over ₹2,000 crore worth of trade with the US annually. "Although the additional 26% import duty is a burden, a future bilateral trade agreement between India and the US may provide relief by reducing tariffs," he added.
Srivastava also pointed out that countries like Vietnam and China may face more barriers in trading with the US under these new policies, giving Indian exporters a potential edge in the global market.
